Axiscades Technologies Ltd. · NSE:AXISCADES
Axiscades Technologies — AXISCADES Engineering Technologies — Investor Presentation (November 2018)
69 slides from Axiscades Technologies's investor presentation, Nov 21, 2018
Slide 1: AXISCADES filing cover letter
AXISCADES Inspired Solutions By Design November 21, 2018 Listing Department The Manager National Stock Exchange of India Ltd. Dptt. of Corporate Services Exchange Plaza, C-1, Block G BSE Limited Bandra Kurla Complex, Floor 25 Phiroze Jeejeebhoy Towers Bandra (E), Dalal Street, Fort, Mumbai- 400051 M
Slide 2: AXISCADES Engineering Technologies Limited: Poised for growth
AXISCADES Engineering Technologies Limited Poised for growth November 20, 2018
Slide 3: Disclaimer
Disclaimer Certain statements in this communication may be considered as ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materiall
Slide 4: Market Outlook – Engineering Services
Market Outlook – Engineering Services Engineering Outsourcing Digital Engg $76 B $650 Bn $80 Bn $24 BN Global Corporate Outsourced Addressed ER&D Spend Globally by India Manf. Engg. & $48 B FY17 Source: Nasscom After Market Indian ER&D segment is expected to grow 3X by 2025 to reach Embedded $92 B a
Slide 5: Addressable market by Industry and Service
Addressable market by Industry and Service ER&D globalization & services addressable market stands at USD 232 BN with Embedded & Software services constituting ~66% of the total market Overall 51 $ 232 B 64 PLM + MFG 32 2 28 28 2 92 8 21 Embedded 16 3 17 1 1 12 12 4 1 76 1 9 19 Digital Engg 6 6 15 2
Slide 6: Market Outlook – Product & Solutions & Offsets
Market Outlook – Product & Solutions & Offsets Make In India and Offsets Defence R&D – DRDO Labs $ 200Bn $ 130Bn $ 40Bn FY19 – ₹ 9600 Cr Capital acquisition plan Import content Offset obligation Source: Secondary Online Research Source: FICCI Key Drivers The offset opportunity can grow to over USD 8
Slide 7: AXISCADES is a leading Product Engineering & Defense Company
AXISCADES is a leading Product Engineering & Defense Company Concept Design | Structures Engineering System Integration | Systems Engineering Mechanical Avionics | Manf Support Electronic Warfare Systems | SCM Engineering Aerospace Defence & Homeland Security Design and Analysis | NPD Product Engine
Slide 8: Strategic acquisition gave us diverse service & product portfolio
Strategic acquisition gave us diverse service & product portfolio Acquisition of Mistral Solutions which is into Defence Electronics and Embedded 2017 Systems Merger of AAT, Axis IT&T and CADES into 2014 one brand. Launch of AXISCADES brand CADES acquired 76% stake in STUDEC Technologies India Pvt.
Slide 9: Built on a strong foundation of engineering poised for growth
Built on a strong foundation of engineering poised for growth 2018 2016 - 2017 Products and Solutions portfolios Capable of addressing digital 2012 to 2015 technologies through Mistral acquisitions. Strong Technology partner, Established as Leading Tier 1 Engineering Solutions Partnerships with Defe
Slide 10: Strategy aligned with transformation in industry
Strategy aligned with transformation in industry • End to end engineering service provider (Mechanical, Electrical, Electronics, Embedded) • “Must grow” & “Must win” , Grow the top 2 accounts • Broaden & Deepen service offerings through acquisition Business • AI/ML as a part of core Engineering serv
Slide 11: Focused verticals: Transportation, Energy, Medical Devices & Defense
Focused vertical Transportation (Auto, Aerospace, Heavy engineering), Energy, Medical Devices & Defense Automotive Heavy Engineering Aerospace & Defence Energy Medical Device • Preferred partner for EU and • Largest ESP to NA OEM • Strategic partner to top 3 of 10 OEMs of • Dedicated Offshore • ISO1
Slide 12: An end to end engineering services provider
An end to end engineering services provider.. End to End Engineering solutions provider - Concept → Assembly → After sales product support Concept Design- Sub system and Components Engine Application development 3D CAD Modeling & Detailing Embedded Product Core engine software Tolerance Analysis, GD
Slide 13: With global footprint with local engineering capabilities
..With global footprint with local engineering capabilities Europe and UK Leicestershire, UK Toulouse, France Hamburg, Donauwörth, Augsburg - Germany Copenhagen, Denmark North America China Peoria, Illinois, USA, Wuxi City Columbus, Indiana USA Tucson, Arizona, USA India SFO, California, USA Bangalo
Slide 14: In partnership with industry leaders and innovative companies
..and in partnership with industry leaders and innovative companies AXISCADES proprietary and confidential data 13
Slide 15: Partner of choice for tier 1 OEMs and innovative engineering companies
Partner of choice for tier 1 OEMs and innovative engineering companies Preferred strategic partner Skilled Multinational teams 8 ODCs Enabling customers across 2300+ Deep-rooted transnational locations Engineers delivering 7 yrs of avg experience relationships with customer delight PhD, Mtech and BE
Slide 16: Built on long term partnership with deep engineering capabilities
..built on long term partnership with deep engineering capabilities ▪ May 12, 2011: CADES awarded Aerospace OEM Strategic ODC 1.0 Partnership 5 years contract “CADES (an AAT group company), a leading Engineering services company has added another feather in their cap for 250 enggrs. by winning an Ae
Slide 17: Board of Directors
Board of Directors Dr. Vivek Mansingh Mritunjay Singh Anees Ahmed Sudhakar Gande Ashwani Kumar Datta Independent Director Chief Executive Officer and Executive Director Non Executive Director Non Executive Director (Chairman) Executive Director Co-founder of Mistral, actively involved An acknowledge
Slide 18: Dynamic & Adept Management for Execution of Future Plans
Dynamic & Adept Management for Execution of Future Plans Mritunjay Singh Kaushik Sarkar Mitalee Dabral Chief Executive Officer & Executive Director Chief Financial Officer Head HR Mritunjay Singh (Munjay) brings decades of experience and has Kaushik’s experience spans over two decades in the field o
Slide 19: Dynamic & Adept Management for Execution of Future Plans
Dynamic & Adept Management for Execution of Future Plans Sharadhi Babu Ajay Sarin Anees Ahmed Whole-time Director – AXISCADES Aerospace & Sales – North America Founder & President – Mistral Technologies and Executive Director AXISCADES Sharadhi is an Aeronautical Engineer, a Software Professional Aj
Slide 20: Dynamic & Adept Management for Execution of Future Plans
Dynamic & Adept Management for Execution of Future Plans Anjan Kumar Abhijit C Paddy Rao Sales Auto, India and GIC Head, Alliances Director Sales – Aerospace, North America Anjan is Vice President and Head of Sales (APAC) and Abhijit has appx 14 years of experience in the product engineering Paddy R
Slide 21: We are coming off the biggest dip in manufacturing industry
We are coming off the biggest dip in manufacturing industry # Acquisition Organic 63.3 32.7 # Includes the revenue of USD16.5 Mn of ACAT acquired in FY17 * Decrease mainly due to end of cycle of large offset Contract AXISCADES proprietary and confidential data 20
Slide 22: Consolidated Revenue and Margin Trend
Consolidated Revenue and Margin Trend 455 53 Notes : Revenue and EBITDA from FY17 is inclusive of ACAT. Revenue and EBITDA of FY18 is inclusive of 4 months revenue and EBITDA of Mistral Decrease in EBITDA in FY17 is mainly due to completion of production phase in M2K project Decrease in EBITDA in FY
Slide 23: Revenue matrix
Revenue matrix Revenue By Vertical (%) FY16 FY17 FY18 H1 FY19 Engineering Design Services 100.0% 77.2% 79.4% 78.7% Product & Solutions 0.0% 22.8% 20.6% 21.3% Revenue by Delivery Location FY16 FY17 FY18 H1 FY19 Onshore 54.0% 43.2% 48.1% 42.8% Offshore 46.0% 56.8% 51.9% 57.2% Revenue by Project type F
Slide 24: Revenue matrix (Contd.)
Revenue matrix (Contd.) Revenue By Industry (%) FY16 FY17 FY18 H1 FY19 Aerospace 51.0% 38.6% 40.1% 29.9% Heavy Engineering & Others * 36.7% 30.4% 28.1% 43.6% Automotive and Industrial Products 7.6% 3.5% 3.6% 3.2% Energy 4.7% 4.5% 7.6% 2.3% Product & Solutions NA 23.0% 20.6% 21.0% Revenue by Geograph
Slide 25: Order Book and Pipeline
Order Book and Pipeline Order Book Order Backlog Order Book Vertical USD Mn USD Mn Engineering Services 10 60 Product & Solutions 22 22 Total 32 82 Pipeline as of 30th Oct 2018 Stage 2 Stage 3 Stage 1 Stage 4 Proposal Submitted Total Qualified Opportunity Invited for Proposal Shortlisted / Negotiate
Slide 26: AXISCADES - Growing Client Base
AXISCADES - Growing Client Base From One Account contributing 100% of revenues in 2008, 14 large accounts to contribute about 83% of revenues in FY18 Revenue at Number of Current runrate Accounts > 20 Mn 2 > 5 Mn 5 1 - 5 Mn 14 Total 21 Large accounts = Accounts which has potential to reach > $ 5 Mn
Slide 27: Poised for growth
Poised for growth ▪ Engineering Services Market is poised for outsource/right shore ▪ “Made in India” is the mantra in Homeland/Defence Product market ▪ Nimble and small company are the ones who will win in this ▪ Right strategy, right team, right time for transforming the company ▪ It’s all about e
Slide 28: Going beyond numbers
Going beyond numbers AXISCADES proprietary and confidential data 27
Slide 29: Products for Homeland Security
Products for Homeland Security AXISCADES proprietary and confidential data 28
Slide 30: Expanding our market by leveraging Machine Learning, augmented reality
Expanding our market by leveraging Machine Learning, augmented reality .. • Searches all data- AM’s DIGITAL ML tool displays the structured, AP’s FORMAT Norms available options unstructured, images, 3d models TN’s TDD Key Word • AI/ML engine Search makes it searchable SIDP …. • Reduce non Key Levers
Slide 31: AI/ML enabled Digitization / Automation for Engineering Activities
AI/ML enabled Digitization / Automation for Engineering Activities Objective: ▪ Digital platform to reduce/minimize the non-engineering tasks in concessions/repairs Benefits: management • Reduce the ALT & improves the quality ▪ AIML concepts that identify relevant or similar concessions & repairs •
Slide 32: We build complex electronics like RADAR & SONAR parts
We build complex electronics like RADAR & SONAR parts » 100% Success rate in every single indigenous radar design since 2007 » Radar Electronics for Ground, Air & Naval applications » Already in production Medium Powered RADAR AEWAC Radar Processing Unit Through Wall Radar FEP for Ship/Subs Locators
Slide 33: Snapshot of Our Key Engagements
Snapshot of Our Key Engagements European Aerospace & Defence OEM North American Off-Highway OEM Since 2011 Since 2008 ➢ A dedicated ODC as an extended engineering centre ➢ One of the largest Engineering Service Provider to the OEM STRATEGIC ➢ E2S supplier status since 2008 ➢ Footprint of 24 location
Slide 34: Mistral - 20+ Years of Engineering Excellence
Mistral - 20+ YEARS OF ENGINEERING EXCELLENCE 350+ 20+ AWARD 100+ DESIGNS SKILLED WINNING COMMERCIALLY EMBEDDED DESIGNS DEPLOYED ENGINEERS DRDO Defence STPI EDN Winner of Red Herring Winner of India SME 100 FedEx IBL UBM ACE NASSCOM Global Services 100 Technology Innovation Winner of Innovation Karn
Slide 35: Business Domains
BUSINESS DOMAINS AEROSPACE & HOMELAND PRODUCT DEFENSE SECURITY ENGINEERING ▪ Airborne Systems ▪ Master Control Room ▪ Wearable Electronics ▪ Electronic Warfare ▪ Mobile C4ISR Platforms ▪ Industrial Automation ▪ Naval Systems ▪ Tactical Communication ▪ Internet of Things ▪ RADAR Systems ▪ Medical & A
Slide 36: Concept to Deployment
CONCEPT TO DEPLOYMENT System Training Requirements Management Support & Maintenance Feasibility Study Obsolescence Management System Architecture Application Analysis System Identification Proof of Concept FCC/CE UL DO254, DO178 CoC Board Design FPGA Design System Software COTS Amalgamation Independ
Slide 37: Product Engineering Services
PRODUCT ENGINEERING SERVICES Internet Wearable Industrial Medical & Silicon Infotainment Of Things Electronics Automation Assistive Support AXISCADES proprietary and confidential data 36
Slide 38: Wearable Electronics
WEARABLE ELECTRONICS Small form factor, BT/Wifi connectivity Head Tracking, Voice miniaturization, extended between iOS/Android Recognition battery life devices CASE STUDIES • AR Glasses for Military and Industrial applications • Portable smart screen for PC/Mobile AXISCADES proprietary and confiden
Slide 39: Internet of Things
INTERNET OF THINGS Protocols: MQTT, CoAP, Cloud connect with M2M: 6LowPAN, ANT, Connectivity: WiFi, XMPP, DDS, STOMP, AWS, Samsung Artik ZigBee , BLE, NFC and WiMax, LTE, 6LowPAN, AMQP, REST, LWM2M, and others RFID WirelessHART Websocket CASE STUDIES • Smart Safe • Industrial Energy Meter IoT System
Slide 40: Industrial Automation
INDUSTRIAL AUTOMATION Connectivity: ProfiBUS, Client Apps for displaying High power efficient, HDI EtherCAT, CAN, real-time parameters, and Flex PCB designs PROFINET IO, EtherNet/IP, trends based on Cloud ModBUS, DeviceNet etc. data CASE STUDIES • Industrial Gateway • IoT Energy Meter • Power Transm
Slide 41: Medical and Assistive Electronics
MEDICAL AND ASSISTIVE ELECTRONICS 3rd party library integration: Voice Pulse Oximetry, ECG/EEG, Custom iOS and Android recognition, gesture Non-Invasive BP apps development recognition, OCR, TTS and likes CASE STUDIES • Fetal Heartbeat Monitor • Portable Barcode Scanner • Portable Desktop Magnifier
Slide 42: Infotainment
INFOTAINMENT Form factor Design with Multimedia framework Media Streaming / Media multi-display support customization Encryption CASE STUDIES • In-flight Entertainment • Car Infotainment System AXISCADES proprietary and confidential data 41
Slide 43: Silicon Support
SILICON SUPPORT SoMs, Development System on Modules (SoM) Silicon Validation Platforms Platforms & Reference Designs CASE STUDIES • 820 Nano SOM & Development Kit • AM437x PoM • RTM-Breakout Card for Keystone II EVM AXISCADES proprietary and confidential data 42
Slide 44: System on Modules
SYSTEM ON MODULES 820 Nano SoM SMARC Module i.MX6 SoM AM437x PoM ▪ Ultra Compact ▪ Small Form factor ▪ Light-weight, small footprint ▪ Ready-to-use Product ▪ QualcommTM Snapdragon 820 ▪ Renesas RZ/G1E ▪ Freescale i.MX6 Dual/Quad on Module ▪ USB Type C ▪ 1GByte DDR3 ▪ 1GB LPDDR2-800 (PoP) ▪ Sitara AM
Slide 45: Aerospace and Defense
AEROSPACE AND DEFENSE RADAR Electronic Telemetry NAVAL Airborne Sub-Systems Warfare Solutions Systems Systems AXISCADES proprietary and confidential data 44
Slide 46: RADAR
RADAR FGPA/DSP/GPGPU High-speed Digital and AFT, Conduction cooled, Signal Processing Mixed Signal HW Design Air and Liquid Cooled platform CASE STUDIES • Radar Controller and Processing Unit • Signal and Data Processing • Front-end Processing Unit • Airborne RSP System AXISCADES proprietary and con
Slide 47: Naval Systems
NAVAL SYSTEMS SBCs and DSPs for Phased Networked Qt based Application multi-channel acoustic system for high-res Development for Data Data Acquisition and graphical display control and display Processing CASE STUDIES • Front-end Processing for SONAR • Coastal Surveillance System • Signal Processing
Slide 48: Electronic Warfare
ELECTRONIC WARFARE FPGA / Processor Algorithm: Pulse Multi-processor / Multi- DO-178B Complaint Compression, DDC, FFT, board application Software Development CFAR, Vector Correlation, architecture and design Kalman filtering, Doppler Processing CASE STUDIES • DF System • Next-generation DRFM platfor
Slide 49: Telemetry
TELEMETRY IRIG 106, Class 2 Finite State Machines Electrical, sensor, analog specifications compliant implemented on FPGA and digital signals CASE STUDIES • Dual-node Telemetry Encoder • Integrated Telemetry System • Miniature Integrated Telemetry AXISCADES proprietary and confidential data 48
Slide 50: RF Designs
RF DESIGNS Transceivers based on Phased Array Radars in Antenna designs UHF, VHF, HF, MF L, S and C-bands CASE STUDIES • GaN based Transmit-Receive Multi module • Ku Band Signal Data Recorder • C-Band Synthesizer • Wall Penetrating RADAR AXISCADES proprietary and confidential data 49
Slide 51: Airborne Systems
AIRBORNE SYSTEMS FPGA/DSP/DPDPU Integration and DO-178B and DO-254 based Signal Processing implementation of DSP complaint Designs systems Algorithms CASE STUDIES • GaN based Transmit-Receive Multi Module • Avionics Controller • Remote Interface Unit AXISCADES proprietary and confidential data 50
Slide 52: Redefining Homeland Security
REDEFINING HOMELAND SECURITY AXISCADES proprietary and confidential data 51
Slide 53: Mobile C4ISR Platforms
MOBILE C4ISR PLATFORMS ▪ Easy & Rapid Deployment ▪ CCD/Thermal camera, PTZ, Drones, Long-range, wireless COFDM, NLOS body worn cameras ▪ Integrated Communication System ▪ Voice, data and video conferencing Safe City Emergency & Disaster Tactical Management Operation Rallies and Airports Public Event
Slide 54: Homeland Security Products
HOMELAND SECURITY PRODUCTS Mobile C4ISR Video IP MESH AI based Video Platforms Investigation Radios Analytics Body-Worn Mission Drones & Cameras Critical Drone Communication Detectors AXISCADES proprietary and confidential data 53
Slide 55: Alliances
ALLIANCES AXISCADES proprietary and confidential data 54
Slide 56: Aerospace and Heavy Engineering
AEROSPACE AND HEAVY ENGINEERING AXISCADES proprietary and confidential data 55
Slide 57: Digitization for Aerospace Industry
Digitization for Aerospace Industry Digital Solutions for improving efficiency, Design Cycle and manufacturing delays, with enhanced Customer Experience Digital Solutions Portfolio AR / VR / MR Automation Artificial Intelligence (AI) & Machine Learning In-Flight Entertainment & Communications IoT &
Slide 58: Digitisation Engineering in Practice
Digitisation Engineering in Practice 1. Data Analytics Benefits o Insights on trends & patterns o Quick Wins o Big data management o Long-term solutions based on know-how 2. Non Technical Tasks reduction by Leveraging AIML ▪ Non-engineering tasks addressed by AI based tool like Quick search, previou
Slide 59: AIML enabled Solutions for Engineering Activities
AIML enabled Solutions for Engineering Activities Objective: Geo localisation ▪ Digital platform to reduce/minimize the non-engineering tasks in concessions/repairs Mgmt ▪ AIML concepts that identify relevant or similar concessions & repairs ▪ Address through text, image recognition techniques for t
Slide 60: Smart Factory/Industry 4.0 Solution – Optimize assembly line
Smart Factory/Industry 4.0 Solution – Optimize assembly line AXISCADES proprietary and confidential data 59
Slide 61: Bringing efficiency and faster decision making on shop floor
Bringing efficiency and faster decision making on shop floor Problem: • Customers are under increasing pressure to get more done faster with same resources, and maintain high standards while doing so. This demand is for speed, efficiency and precision. Reducing or eliminating the wastes to increase
Slide 62: Enable optimal performance of humans on shop floor
Enable optimal performance of humans on shop floor Problem: Operator has to check the information at the work bench, walk to different rack locations find necessary parts, place them in the kit and sign off the order. This is a lot of time consuming, yet tedious process which results to: • 20% defec
Slide 63: Financial Performance
FINANCIAL PERFORMANCE AXISCADES proprietary and confidential data 62
Slide 64: Consolidated Financial Performance – H1 FY19
Consolidated Financial Performance – H1 FY19 Q2 FY19 Q1 FY19 QoQ H1 FY19 H1 FY18 H1 YoY Explanatory Notes Revenue from Operations Revenue from operations ($ Million) $ 23.3 $ 18.1 28% $ 41.4 $ 35.1 18% • Q-o-Q grew 33% and H1 Y-o-Y by 26% in INR In Million Rs terms Revenue from operations 1,628 1,22
Slide 65: Consolidated Balance Sheet Snapshot
Consolidated Balance Sheet Snapshot Particulars 30-Sep-18 31-Mar-18 (INR Mn) (INR Mn) Net Worth 2867 2917 Total debt 1503 1378 - Long term loan 618 726 - Short term Working Capital 886 652 Net debt (Total debts – Free Cash) 1073 759 Trade payables 398 500 Fixed assets (Net of Depreciation) 3469 3437
Slide 66: Trade Receivables
Trade Receivables Particulars 30-Sep-18 31-Mar-18 (INR Mn) (INR Mn) Trade receivables 1,810 1,659 Increase in Trade receivables was mainly due to a large product delivery in Product business amounting to INR 210 Mn in Q2 and the payment was received in November 2018 DSO as of 30 September 2018 120 D
Slide 67: Risk Management: Improving Quality of Receivables
Risk Management: Improving Quality of Receivables New Clients: KYC Process Existing Clients: Regular Checks • Standard form for capturing D&B rating and • Financial and risk analysis of all existing Financial evaluation of customers customers having large receivables • Must for signing any new MSA •
Slide 68: AXISCADES at inflection point
AXISCADES at inflection point Marquee Ability to spot, structure, acquire, Customer base integrate and grow manifold. High Repeat Business (around 90%) Engineering DNA • Deep Domain Knowledge • Largest Aero structures Company in India. Services to Solutions Transformation AXISCADES proprietary and c
Slide 69: Thank You
Thank You AXISCADES proprietary and confidential data 68
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